THE
TAKEOVER OF SATYAM COMPUTER SERVICES LIMITED BY MAHINDRA
In 2009, the founder of Satyam Computer Services, Ramalinga Raju, admitted to fudging the books and inflating the assets of the company. They committed financial fraud to the tune of $1.5 billion. It led to serious criminal charges, and the company's stock prices and fortunes collapsed. This was known as the Satyam Scandal, one of the biggest cases of fraud in the Indian IT service industry. The investors lost about ₹3,300 crores, which is equivalent to ₹92 billion or $1.2 billion in 2023 in the related panic selling. The company's shares fell 55% on the New York Stock Exchange.
To avoid a complete collapse and protect the interests of its employees and clients, Mahindra Group's IT arm, Tech Mahindra, purchased a major stake in the company. In June 2009, the company renamed itself Mahindra Satyam. Mahindra Satyam merged with Tech Mahindra on June 24, 2013.
Since then, the company has gone through a lot of struggles, twists, and turns and gradually reached a steady stage under the Mahindra umbrella. By the time the merger was complete in 2013, the combined entity was among the top five, with revenues of $2.7 billion and 84,000 employees on its rolls. It's really appreciable how well Tech Mahindra has managed the integration process. They focused more on positive reinforcement and the formal merger of Mahindra Satyam with Tech Mahindra made “Satyam” brand history.
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